OK. This is fixed. To everyone also experiencing this... you must set the Spring Profile "pulse.authentication.default" or it will not load the AuthenticationManager Bean.
The overall issue is with the RowStore's documentation, which says this is OPTIONAL, when in fact it is required.
http://rowstore.docs.snappydata.io/docs/manage_guide/pulse/quickstart.html#topic_795C97B46B9843528961A094EE520782
It says at Step 4.) that configuring security is Optional when in fact you have to pass a Spring Profile. Also, again in the section "Authenticating Pulse Users", it says this is not a requirement.
To fix the issue I had to pass the Spring Profile "pulse.authentication.default" to activate the Bean in spring-security.xml and deploy pulse.war properly.
A better way for SnappyData pulse.war to do this in the future might be to use "!pulse.authentication.custom", which would always load the default AuthenticationManager bean as long as a custom one was not configured.
Example change for future to make it truly optional:
<beans:beans profile="!pulse.authentication.custom" >
<authentication-manager>
<authentication-provider>
<user-service>
<user name="admin" password="admin" authorities="ROLE_USER" />
</user-service>
</authentication-provider>
</authentication-manager>
</beans:beans>